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MALAYSIA and the State of Palestine have signed a landmark Memorandum of Understanding (MoU) aimed at strengthening bilateral trade and deepening economic cooperation, as part of efforts to support Palestine’s socio-economic recovery.
The MoU, formalised on Thursday, outlines strategic collaboration in areas including trade, investment, the halal industry, energy, tourism, and the digital economy. It also seeks to foster private sector partnerships and build capacity through training and knowledge-sharing initiatives.
The agreement was exchanged between Datuk Hairil Yahri Yaacob, Secretary General of Malaysia’s Ministry of Investment, Trade and Industry (MITI), and H.E. Walid Abu Ali, the Ambassador of Palestine to Malaysia, in a ceremony witnessed by Prime Minister Datuk Seri Anwar Ibrahim.
“This momentous occasion reaffirms Malaysia’s unwavering commitment to supporting Palestine’s economic resilience and recovery,” MITI said in a statement following the signing.
The MoU includes initiatives to develop industrial zones, strengthen small and medium enterprises (SMEs), and promote sustainable growth across sectors with strong potential.
Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz, described the agreement as a “testament to our shared vision”.
“Malaysia stands firmly behind Palestine, to help rebuild its economy and establish the foundations for socio-economic recovery,” he said.
“This MoU is a testament to our shared vision of creating sustainable trade and investment linkages, particularly in sectors with high potential such as the halal industry, digital economy, and SMEs.
“The Government of Malaysia has also agreed in principle to exempt some Palestinian agricultural and food products imported into Malaysia from custom duties. We look forward to working closely with our Palestinian partners to deliver tangible mutual benefits for our people.”
In 2024, Palestine was Malaysia’s 15th largest trading partner in the West Asia region. Malaysia’s primary exports included plastic-based products and processed foods, while its main imports from Palestine were agricultural products, particularly dates.
Malaysia views the agreement as an important step in enhancing its long-standing support for Palestine’s development, while fostering greater economic connectivity and shared prosperity. - September 19, 2025
